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What to know before starting?
What to know before starting? 
What will you learn?
 To understand the meaning of social entrepreneurship in the countryside.
To recognise the social business models.
To get to know more about the social and economic benefits of rural activities
To discover diverse forms of social entrepreneurship in rural areas.
How much time will it take?
 40 minutes
EQF level
Level 3
Who created the content and will recognise your learning?
This material was created by the partners of the Erasmus+ project “Upskilling Rural”.
Let’s start... but first think…
Let’s start... but first think…
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Social entrepreneurship
Social entrepreneurship is the practice of starting and running a business with the primary goal of solving social, cultural, or environmental issues. Unlike traditional entrepreneurs who focus mainly on profit, social entrepreneurs aim to create positive change and improve society while still operating a sustainable and financially viable enterprise.
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Financing of social entrepreneurship
Financing of social entrepreneurship
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Impact Investing
Impact investing involves investments made with the intention of generating both measurable social or environmental impact and financial returns. Investors actively seek enterprises that address societal challenges while maintaining sustainable business models. This form of financing encourages long-term scalability but requires social enterprises to balance mission objectives with investor expectations.
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Grants
Grants are non-repayable funds provided by governments, foundations, or international organizations to support social initiatives. They are typically awarded based on the social impact and alignment with specific policy or development goals rather than financial return. While grants reduce financial risk for social entrepreneurs, they often involve strict reporting requirements and limited flexibility in fund usage |
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Crowdfunding
Crowdfunding enables social entrepreneurs to raise small amounts of capital from a large number of individuals through online platforms. It also serves as a tool for validating ideas and building community engagement around a social mission. However, successful crowdfunding campaigns depend heavily on effective communication, transparency, and public trust. |
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Social business models
Social business models
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Employment-Based Model
The enterprise creates jobs for marginalized or disadvantaged groups as its primary social mission. In rural areas, this model is common in agricultural processing or craft-based enterprises employing long-term unemployed residents. |
Cross-Subsidization Model
Profits generated from commercial activities are used to finance social programs or services. For example, revenue from rural agritourism may support training programs for local farmers or community development initiatives. |
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Cooperative / Community-Owned Model
The business is owned and managed collectively by members of the local community, who share both profits and decision-making power. Rural agricultural cooperatives are a typical example, ensuring fair income and economic stability for small farmers. |
Fee-for-Service Model with a Social Mission
Customers pay for goods or services that directly address a social need. In rural contexts, this may include affordable energy, transport, or digital services for underserved communities.
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Social entrepreneurship in rural areas
Social entrepreneurship in rural areas
What the social and economic benefits of the activity can be? 
Benefits:
- Social: counteracting unfavourable socio-economic processes such as: unemployment, social exclusion, marginalisation; professional activation of people excluded from the labour market (the disabled, addicts, long-term unemployed, homeless); integration of the local community related activities;
- Economic: additional revenue, commercial and production activities (sale of manufactured goods and services on a continuous basis), independence and sovereignty of activities; services of a mutual nature.
Forms of social enterprise in rural areas
Among the forms of social enterprise in rural areas we can mention:
- A social cooperative is a social enterprise combining the characteristics of an enterprise and a non-governmental organisation. A social cooperative is a chance for a better life for many people from disadvantaged groups. The members of such a cooperative create jobs for themselves, providing an income for themselves and their families, and through joint action they change themselves and the environment in which they live.
- A foundation is an institution whose founder has set aside specific resources to achieve a stated purpose. Its characteristic feature is the non-profit nature of the purpose for which it was established.
- An association is made up of at least seven voluntarily associated persons with common goals or interests. A characteristic feature is democratic management, which has the effect of making it more difficult to manage and run such an organisation.
Handicrafts products
Where to start creating handicraft products? - Stages…
1. Concept and Design:
- Idea Generation: to conceptualize the product based on inspiration, cultural significance, or functionality.
- Sketching and Planning: to draw designs and plan the dimensions, materials, and techniques to be used.
2. Material Selection:
- Choosing Materials: to select appropriate raw materials (e.g., clay, wood, fabric, metal) based on the design and desired outcome.
- Preparing Materials: to process the raw materials as needed, such as cutting wood, molding clay, or dyeing fabric.
3. Crafting:
- Basic Construction: to begin forming the basic shape of the product using techniques like weaving, carving, molding, or sewing.
- Detailing: to add intricate details and refine the product, such as engraving patterns, painting, or attaching decorative elements.
4. Finishing:
- Smoothing and Polishing: Sand, buff, or otherwise smooth surfaces to achieve the desired finish.
- Applying Finishes: Apply coatings, varnishes, glazes, or dyes to protect and enhance the appearance of the product.
5. Quality Control:
- Inspection: Examine the finished product for any defects or imperfections.
- Testing: Ensure the product meets functional and aesthetic standards.
6. Packaging and Presentation:
- Packaging: Carefully package the product for protection and appeal.
- Labeling: Include information such as the artisan's name, materials used, and care instructions.
7. Marketing and Selling:
- Display: Arrange the products attractively for sale, whether in a physical store, market stall, or online.
- Promotion: Use various marketing strategies to attract buyers, such as social media, craft fairs, or exhibitions.
  
Directions for the development of social entrepreneurship in rural areas
What non-agricultural activities directly related to agriculture can be developed in rural areas?
Suggestions for the development of social entrepreneurship in rural areas can include:
- Agritourism,
- Rural tourism (organising holidays, recreation, catering, hospitality),
- Crafts and handicrafts,
- Painting, carving and cutting,
- Equestrianism and hippotherapy,
- Distribution of agricultural products,
- Processing of agricultural products,
- Production and all other activities (services, production, trade).
Inspiration and design ideas
Where to get ideas for projects?
Sources of inspiration and suggestions for handicraft projects can come from nature, architecture, everyday objects, local cultural heritage, monuments, thematic blogs, websites with tips, social media platforms (such as YouTube), where you can find many ideas for simple projects. For beginners who are just starting out, the best projects are those that do not require complicated tools or advanced skills.
This could be braided bracelets, decorating decoupage objects or embroidered pictures. It is worth choosing an industry in which there is high demand and little competition.
Jewellery is very popular. Handmade jewellery is incredibly original and people often buy it.
Other ideas for handicrafts :
- making ceramics,
- tapestries, lace, clothing (e.g. for children),
- prints, paintings,
- souvenirs,
- sculptures, ornaments made by a blacksmith,
- wicker baskets,
- jugs.
  
Directions for the development of social entrepreneurship in rural areas
What non-agricultural activities directly related to agriculture can be developed in rural areas?
Suggestions for the development of social entrepreneurship in rural areas can include:
- Agritourism,
- Rural tourism (organising holidays, recreation, catering, hospitality),
- Crafts and handicrafts,
- Painting, carving and cutting,
- Equestrianism and hippotherapy,
- Distribution of agricultural products,
- Processing of agricultural products,
- Production and all other activities (services, production, trade).
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Sources
Sources
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